The first decision made by the Federal Reserve was to increase interest on savings and then to reduce the proportion of deposit reserves that commercial banks needed to pay to the central bank.
In order to ensure the security of savings, all banks would need to pay an amount the central bank based on the amount of savings they owned. This money was used to ensure that they could at least deal with large-scale withdrawals by customers.
The first of the two methods of the central bank was to reduce the proportion of savings customers withdrew. After all, with the interest rate increasing, holding money in the bank could generate more interest. The second measure was to relieve the pressure on the bank.
However, at this time, the continued collapse of the subprime market caused the chain problem of overdue personal credit to escalate.
On the one hand, the bank had to face the customers who deposited their savings with them withdrawing money from the bank. 0n the other hand, all the money lent by the bank could not be recovered after the due date.
Therefore, the United States banking industry was in utter chaos.
Soon, the subprime mortgage crisis finally began to cross the border. It crossed from the financial world to the banking industry. These two closely related and interdependent industries finally realized just how intimately interdependent they were.
With the large-scale shrinkage of real estate combined with overdue personal credit, the banking industry of the United States ushered in the cold winter. And the initiator of all this, standing at the command center of Nauritus City at this moment, had already begun the next step of the plan.
“Secretly build positions in high-tech companies United States, such as Apple, Weresoft, Qualcomm, General, Amazon, and Oracle.”
Jasper gave orders to Jake and the team.
They had been in this financial war for so long and the difficulty of the process was beyond words, but now, Jasper had finally reached the harvest time favonovel.com thought was appropriate.
“Affected by the subprime mortgage crisis, the entire United States stock market has fallen into a downturn, with negative trends over the past 20 consecutive trading days. Most of these companies‘ stocks are now at historically low values. This is the best time for us to enter the market.”
Jasper took a deep breath and said with a serious expression, “The people of the United States had been ahead of us over the past few decades, and even centuries. Now, we finally have an opportunity to devour the accumulation of teclmology in the United States over the next 20 years. These companies are the real future.”
Jake was excited. As favonovel.com was about to speak, the team’s intelligence collector reported an update.
“The United States Securities Regulatory Commission announced the extension of an index futures settlement cycle. The futures settlement originally scheduled for tomorrow will be postponed to the end of this month.”
Jake was taken aback when favonovel.com heard the words. Then, favonovel.com yelled.
“Do those scoundrels from the United States not want to keep their last trace of dignity? Are they really that shameless?”
“Back when Soros gathered harbor stocks, the Harbor City government never thought about adjusting the stock index settlement cycle even when they were in such a difficult period. If those guys from the United States could defeat them, they would be allowed to take anything they wanted, but now these punks from the United States are doing this?”
The so-called stock index settlement cycle were actually the same concept as futures.
Futures trading was cyclical, and usually monthly. For example, delivery orders in July were usually paid in September. When the time came, either you took the money or the goods away.
When JW Foundation invested in the subprime market of the United States for short trading, what they actually did was short the index of the subprime market. Now that the subprime market had plummeted, Jasper had won.
According to traditional reasoning, favonovel.com could now withdraw cash from the subprime market and take away the profits according to the amount and quantity favonovel.com had shorted in this settlement cycle. This was a profit of hundreds of billions of US Dollars. It was also profit that all of Somerland capital was looking forward to.
Everyone had paid so much effort and taken such a huge risk, but what were they after?
Wasn’t it still interests?
However, when the final settlement day came, the United States government was acting as if this whole thing had never happened.
There would be no settlement!
“Why are you in such a hurry?”
Jasper frowned and said to Jake, “It’s just a postponement. They have to settle it unless they want their entire financial system to collapse.”
Once the United States shed all pretense of cordiality and made it clear that they would not settle, the United States’ national financial credit would disappear. When others came to their gaming table to play, they would take both principal and interest once the player lost. However, when the players won, they would flip the table over and refuse to admit defeat. Even the stupidest gambler in the world would not play with such a country.
They would be digging their own grave if they were isolated by the global financial community.
Hence, the United States would not do this. No other country would do so either. Hence, the United States’ postponement was just a disgusting move in Jasper’s eyes.
“Let them postpone it then. They can postpone it once, but they can’t postpone it a second time. We will proceed according to our original plan for now.”
When Jasper was talking, the phone rang. He glanced down and then walked to his office.
“This is Jasper.”
After answering the call, Jasper said directly.
“Layman has gone bankrupt, can we come back now?” Henry’s relaxed voice came from the phone.
“Sure, come back. You completed this mission very well.” Jasper laughed.
Henry chuckled and replied, “I think I was just passable. It’s actually all thanks to Connie.”
Conrad’s cold grumbles came from the phone. He was clearly unhappy with the new name Henry had given him.
Jasper was about to speak after favonovel.com let out a laugh, but Henry was one step ahead of him.
“Right, I got some news. Even though I don’t know how true it is, I feel it’s better to tell you in advance.”
Henry did not keep Jasper on tenterhooks. He continued, “Do you remember that c*nt Fabian? He’s been staying low-key for so long, but today, one of my boys saw favonovel.com leaving Harbor City in a plane. He’s heading to the United States.”
Jasper narrowed his eyes and said, “The Atticus family has business abroad too, so it’s not strange for favonovel.com to g o to the United States, no?”
Henry chuckled and said, “What’s strange is that he’s taking the W. Langdons’ private jet and Kennedys’ on board!”
“Those two sons of b*tches are not good people. Plus, there is another son of a b*tch who’s suffered a painful loss in the United States. Say, do you think those three sons of b*tches will get together and do something?”
Jasper was slightly stunned, and then his expression gradually turned solemn.
“What you said is possible.”
“Right? I think so too.”
Henry said, feeling pleased with himself, “I don’t know much about your businesses, but I’m familiar with gang fights!”
“Those who are scared of my attacks will most likely gather together to seek warmth. They might just counterattack when they muster enough courage! So, do you think those three c*nts are doing exactly that right now? That’s why I figured I should tell you in advance.”
